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Health crisis: In response to the health crisis, large French groups adjusted their spending and contained their net financial debt in 2020
[Face à la crise sanitaire, les grands groupes ont ajusté leurs dépenses et maîtrisé leur endettement financier net en 2020]

Author

Listed:
  • Olivier Gonzalez
  • Anne-Marie Rieu-Foucault

Abstract

An analysis of the consolidated accounts of large French groups (excluding the financial sector) has highlighted their ability to adjust to the context of the health crisis. Faced with the decline in activity, which affected turnover and profitability, they cut back their dividend payouts, maintained their overall level of investment and contained their net financial debt by increasing their cash position. Naturally, these aggregate trends vary from one sector of activity to another. L’analyse des comptes consolidés des grands groupes français (hors secteur financier) a mis en évidence leur capacité d’adaptation au contexte de la crise sanitaire. Face au recul de l’activité qui a affecté chiffre d’affaires et rentabilité, ils ont diminué les distributions de dividendes, préservé leur niveau global d’investissement et maîtrisé leur endettement financier net en renforçant leur trésorerie. Ces évolutions agrégées sont naturellement hétérogènes selon les secteurs d’activité.

Suggested Citation

  • Olivier Gonzalez & Anne-Marie Rieu-Foucault, 2021. "Health crisis: In response to the health crisis, large French groups adjusted their spending and contained their net financial debt in 2020 [Face à la crise sanitaire, les grands groupes ont ajusté," Bulletin de la Banque de France, Banque de France, issue 238.
    • Handle: RePEc:bfr:bullbf:2021:238:07
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    References listed on IDEAS

    as
    1. Vinas Frédéric, 2020. "Outstanding loans to enterprises increased sharply in France in the first half of 2020 [Une forte hausse des encours de crédits aux entreprises en France au premier semestre 2020]," Bulletin de la Banque de France, Banque de France, issue 232.
    2. Viral Acharya & Sergei A. Davydenko & Ilya A. Strebulaev, 2012. "Cash Holdings and Credit Risk," The Review of Financial Studies, Society for Financial Studies, vol. 25(12), pages 3572-3609.
    3. Raffaele Santioni & Fabio Schiantarelli & Philip E. Strahan, 2017. "Internal Capital Markets in Times of Crisis: The Benefit of Group Affiliation in Italy," NBER Working Papers 23541, National Bureau of Economic Research, Inc.
    4. Olivier Blanchard & Thomas Philippon & Jean Pisani-Ferry, 2020. "A new policy toolkit is needed as countries exit COVID-19 lockdowns," Bruegel Policy Contributions 37232, Bruegel.
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    Cited by:

    1. Benjamin Bureau & Loriane Py, 2021. "Health crisis: French companies maintained their repayment capacity in 2020 [Crise sanitaire : les entreprises françaises ont préservé leur capacité de remboursement en 2020]," Bulletin de la Banque de France, Banque de France, issue 238.

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